Use of Tax Credits as NRPs income?

shell_542

Debicj wrote: »

I found this info. on http://www.csa.gov.uk/en/PDF/leaflets/new/CSL301.pdf (page 13)

It's a bit vague but it does say that tax credits can be taken into account.

'We work out child maintenance by applying one of 4 rates to the
non-resident parent’s ‘net weekly income’. Income is earnings,
money from an occupational or personal pension, certain

benefits and in certain circumstances tax credits.'

That's the problem though. I am 99% sure that they have changed the wording of that. I'm almost certain it used to say "and tax credits" not "in certain circumstances"

It was the only mention of child tax credits on their website at the time and indicated tax credits were always included as income. Then on another part of the website it went on to explain about working tax credits being taken into account "in certain circumstances"

To me, that now reads that it could be, as tax credits are not automatically used as income and only in certain circumstances, only WTC is used as described on the website...

which is also what they have told some people when ringing.

Knowing the CSA, a change of procedure could have been introduced and the information not filtered through to all staff yet .... or some staff are just not aware.

That's why clarification is needed really.

There is no longer anything on their site which says child tax credits are always used as an NRP's income.

alwayspuzzled

p9cbs wrote: »

I have just read all the way through the booklet on how child maintenance is worked out and I cannot find anything in there which says child tax credits are classed as income and therefore assessable on CSA2. Di I overlook this information or did the CSA??

Surely if they have not put it in writing in their guide or on a form to me, I don't have to pay it!!?? I only have their word for it over the phone and we all know how they overlook info given in phone conversations when it suits them. Think I should just do the same.

Where does it say in black and white that we have to declare our CTC's in the CSA2 system? Can anyone tell me?

No where that I have found. When my DP's claim started last sept I went through every bit of info both recieved by post and on the website and could find NO mention of child tax credits. Only working tax credits and the higher/same/lower wage examples. We sent off all paperwork as requested, she appealed and amongst other things accused us of recieving tax credits (worded like we were doing something illegal!) in our appeal responce we confirmed that we did and in reassessment they were included.
However they only assessed on the child tax credit portion NOT on the childcare element of working tax credit (don't get WTC income above threashold). At no point did they ask us directly about tax credits and they accessed the actual figures etc from their own systems. I've read somewhere that they only include the CTC if the NRP admits to recieving them which seems a bit strange to me. Surely their should be a clear ruling, it should be included in their booklets etc and the original assesment forms should ask the question?

littlemisspink

p9cbs wrote: »

I have just read all the way through the booklet on how child maintenance is worked out and I cannot find anything in there which says child tax credits are classed as income and therefore assessable on CSA2. Di I overlook this information or did the CSA??

Surely if they have not put it in writing in their guide or on a form to me, I don't have to pay it!!?? I only have their word for it over the phone and we all know how they overlook info given in phone conversations when it suits them. Think I should just do the same.

Where does it say in black and white that we have to declare our CTC's in the CSA2 system? Can anyone tell me?

Nowhere hun, that is what I was getting stressed about! They won't even tell you if you call! I have spoken to 4 advisors who all said this was not included, and it was only through this site I found it is!!!
As for the petition, let me know if you find one! I have sent a letter to the PM about this, so am sure the more of us who do, the bigger our voice!!! I might start a petition, if anyone knows how???

littlemisspink

Omg, I agree with both pp's!
What are "certain circumstances"?? Are we not privy to that info?
And pp (sorry forgot your name lol) how did you find out it was not the childcare portion? As that makes up the majority of my CTC when me and oh move in together, as we wouldn't qualify for WTC. Which makes it seem not as bad, but its still absurd and I will still be doing anything I can to get this stupid rule changed!

JulietAmber_2

Hi
I think I've mentioned this story somewhere on another forum but you MUST tell them that you claim WTC and CTC. If you don't, they will check anyway and will stick a £1000 fine on you, plus make you pay the arrears.
I think the 'certain circumstances' refers to the WTC less, same, more rules.
We phoned the CSA advice line and they said our CTC would NOT be included, as did one of the CSA advisers dealing with the claim, but the final figure DID include CTC. I think by and large CTC is included - it certainly was for us. My partner's ex has certainly cashed in on him living with me - if he didn't she'd only get £18 a week.

s12s

p9cbs - NRP CSA2 - tax credits included.
me - PWC - tax credits of NRP(if received) not included.

Anyone else think they make this up as they go along!? Though I am not surprised as I actually had to resort to shouting down the phone a long time ago that you did not have to be a pensioner to be in receipt of a pension. Seems she was of the view if you are not pension age (60-65) you should not have one.

alwayspuzzled

littlemisspink wrote: »

Omg, I agree with both pp's!
What are "certain circumstances"?? Are we not privy to that info?
And pp (sorry forgot your name lol) how did you find out it was not the childcare portion? As that makes up the majority of my CTC when me and oh move in together, as we wouldn't qualify for WTC. Which makes it seem not as bad, but its still absurd and I will still be doing anything I can to get this stupid rule changed!

In DP's reassessment the figures used for calculation are just the CTC, not the full amount I recieve to include childcare element. Reassesment papers aren't included in the tribunal bundle I've just been through but I know it definately stated 'not childcare element'.

DX2

Does the CSA take into account my tax credits?

Under CS1 – working tax credit (WTC) is considered as income for the NRP, unless the NRP and NRPP earn equal amounts, in which case only 50% of the tax credits is considered income. If the NRPP earns more than the NRP, WTC is NOT included. Child Tax Credit (CTC) is included as income under the protected income section only. It is disregarded in full in the Exempt Income Section.
Under CS2 – working tax credit is calculated as with CS1 cases, but child tax credits are included in full.
http://www.nacsa.co.uk/index.php?option=com_content&view=article&id=52&Itemid=73

Net weekly income

The amount of income (usually pay or salary) left after taking off things like income tax, National Insurance and payments into a pension scheme. Bonuses and commission also count as pay or salary. We don’t normally count dividends paid to a director of a limited company, unless the parent with care asks us to do so.
We count Working Tax Credit as income if the non-resident parent’s earnings are higher than their partner’s earnings. If the non-resident parent and their partner’s earnings are the same, we include half of the Working Tax Credit in the child maintenance calculation. We don’t count Working Tax Credit as income if the non-resident parent earns less than their partner.
http://www.csa.gov.uk/en/info/glossary.asp#jump-t

shell_542

Again DX, that isn't the CSA stating child tax credits are used automatically as income. Nowhere on the CSA website does it state anymore that tax credits are always used, only under certain circumstances.

And NACSA are not the CSA. Their information isn't necessarily up to date. They weren't aware of the supposed "recent change of procedure" someone posted about on here recently when they were called and asked.